Qatar Navigation Company and Qatar Shipping Company approve merger

Qatar Navigation Company and the Qatar Shipping Company will move ahead with merger plans after the companies’ boards of directors approved the plan, Reuters reports.

The boards of directors have approved an exchange ratio of 2.2 shares of Qatar Shipping for each share of Qatar Navigation, the companies said in a joint statement on the Doha Securities market website.

The Qatari government first started to explore a potential transaction in November 2008 when a steering committee was formed to consider the details of the proposed study.

The transaction remains subject to finalisation of structuring matters, negotiation of the terms of definitive merger documentation, approval by the shareholders of both companies, full regulatory and legal approval and customary closing conditions.